Sample_Paths - Motivating Example Suppose you are Houston...

IntroductoryEngineeringStochasticProcesses, ORIE361Instructor: MarkE. Lewis, AssociateProfessorMotivating ExampleSuppose you are Houston Jones. You work for a well-knownmicro-chip developerPintel. You are part of the logistics groupand are responsible for making production quantity and shippingdecisions. Today your boss walked in and said, “Houston, we havea problem. We are committed to providing 300,000 chips to’Menovo’ in 7 weeks.”This does not initially seem like a problem to you since you knowyou have the capacity to meet this demand, but the boss thenpoints out that ALL of the plants owned by Pintel that couldproduce over the next two months were damaged in the largestorm recently. He asks you to look at the current inventory anddecide how many chips you actually will be able to provide.Again, this does not seem very difficult, except that you look atthe calendar and realize that you have a contract to fill orders by“Cell” weekly over the next several weeks. How do you go aboutestimating the inventory you will have available in 7 weeks?

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